Indian Economy: News and Discussion

[ezsasa]

I think last year our overall exports was 330 billion dollars. Am it right..?

Last years data in the link below..

Exports remained the same more or less, imports came down a lot.

https://pib.gov.in/newsite/PrintRelease.aspx?relid=189768

 

[IndianHawk]

Last years data in the link below..

Exports remained the same more or less, imports came down a lot.

https://pib.gov.in/newsite/PrintRelease.aspx?relid=189768

So overall defecit is down by almost 26 billion usd .
Not bad in a single year. Clearly success of manufacturer and success of make in India.

Now this corona has disrupted everything yet we should gain some leverage later due to supply chains deserting china.

I guess in 4-5 yeras we will be in current account surplus. And then rupee will rise upward boosting our nominal gdp significantly . We might cross Japan sooner even in nominal gdp then what is being estimated.

 

[Prashant12]

India to restart industry engine from April 20

Read more at:
https://economictimes.indiatimes.co...ofinterest&utm_medium=text&utm_campaign=cppst

 

[Prashant12]

Ecommerce companies Flipkart, Snapdeal could resume full operations


Read more at:
https://economictimes.indiatimes.co...ofinterest&utm_medium=text&utm_campaign=cppst

 

[indiatester]

Received on Whatsapp....
At 60 PE, read Marcellus, at 30 PE read Basant , at 15 PE read Buffett and at 8 PE, read Vishnu Sahasranaam/Hanuman Chalisa.

 

[HariPrasad-1]

Service exports are cushioning our deficit by 50% .
We need to double down on it.

We need to prepare our tier 2,3 cities to take on phillipines type nations so that BPO , outsourcing remains in India even as major cities move to sophisticated areas.

Excellent suggestion with a small correction. Tire 3 cities only. Tire 2 like surat and Agra are already doing a great job. We need to take this further down.

 

[Prashant12]

India’s current account may turn surplus in FY21: SBI


Read more at:
https://economictimes.indiatimes.co...ofinterest&utm_medium=text&utm_campaign=cppst

 

[aditya10r]

@Indx TechStyle @IndianHawk @Haldiram

Can you guys enlighten me on how Sovereign wealth funds(SWF) work and should INDIA have a big kitty of SWF?

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[HariPrasad-1]

India’s current account may turn surplus in FY21: SBI


Read more at:
https://economictimes.indiatimes.co...ofinterest&utm_medium=text&utm_campaign=cppst

This is an excellent news . we shall not be dependent on remittance from NRI Tu to finance the the trade deficit. When this happened last time in vajpayee Ji's era, INR saw a big appreciation. Let us hope that it happens again. After all our currency is highly undervalued. A big appreciation is very much due.

If I were a finance minister, I will make a policy of giving a big concession to all items which we import. Just produce huge quantity of bio diesel and methanol. Use bio gas for bottling. Generate bio gas from municipal waste. Impose heavy duty on capital goods which we produce in India. All imports items which we can produce in India should be discouraged for import.

 

[sorcerer]

India is world's most digitally dexterous country: Survey

BENGALURU: Sixty-seven per cent of digital workers in India said emerging technologies such as machine learning (ML), artificial intelligence (AI), Internet of Things (IoT) are increasing their effectiveness at work, according to a survey by Gartner, Inc.

The Gartner 2019 Digital Workplace Survey found that India is the most digitally dexterous country in the world - followed by the UK and the US, due to having the largest Gen Z workforce along with the desire to learn new skills using digital technologies in the workplace.

 

[sorcerer]

India’s current account may turn surplus in FY21: SBI


With Covid-19 crippling economic activities across the globe leading to a collapse in crude prices, India could benefit on the current account. India always had this in deficit, where it imported more than it exported. That could change this year. “Taking oil and non-oil imports together, we can also see 25% dip in merchandise imports,’’ said Ghosh who forecasts a current account surplus of 0.7% of the gross domestic product at $19 billion this fiscal.

 

[IndianHawk]

@Indx TechStyle @IndianHawk @Haldiram

Can you guys enlighten me on how Sovereign wealth funds(SWF) work and should INDIA have a big kitty of SWF?

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SWF is essentially an investment fund by the govt. If a nation has excess wealth ( from oil or mineral exports ) or high per capita income so people invest in govt fund for future pension ( Sovereign pension funds) .

They use this money collectively to generate long term returns . Since it's govt controlled focus is on security of investment rather then profit. So the investment is usually in very secure areas with long term planning .

India doesn't have excess money from experts yet. But we do have EPF and PPF which are sovereign funds. But they mostly invest in India itself as growth is highest in India.

Even Canadian pension fund invests in Indian infrastructure to secure long term return to be able to pay pension to Canadian pensioners.

In future we will have multiple such funds which the govt could use strategically.

There is already psu disinvestment fund. Telecom surcharge based fund and govt pension funds like NPS .

 

[IndianHawk]

India’s current account may turn surplus in FY21: SBI


With Covid-19 crippling economic activities across the globe leading to a collapse in crude prices, India could benefit on the current account. India always had this in deficit, where it imported more than it exported. That could change this year. “Taking oil and non-oil imports together, we can also see 25% dip in merchandise imports,’’ said Ghosh who forecasts a current account surplus of 0.7% of the gross domestic product at $19 billion this fiscal.

If oil prices remain low for longer we can sustain the surplus far longer. With USA and Europe in recession it could just be that .

 

[aditya10r]

If oil prices remain low for longer we can sustain the surplus far longer. With USA and Europe in recession it could just be that .

If a capital flight starts in the west we should facilitate investors to put money in indian market, especially in INFRA.

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I just wish oil remains below 30 USD for 2-3 years.That'll be enough time for us to bounce back and get 10% plus growth rate.

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Corona pandemic could be a blessing in disguise,we should milk it dry.

 

[IndianHawk]

If a capital flight starts in the west we should facilitate investors to put money in indian market, especially in INFRA.

__________________________________________

I just wish oil remains below 30 USD for 2-3 years.That'll be enough time for us to bounce back and get 10% plus growth rate.

__________________________________________

Corona pandemic could be a blessing in disguise,we should milk it dry.

Too low oil is also a problem. It will destroy gulf and Russian economy and wipe out our remittance which is some 70billion $ per year.

We need oil at 40-50 below 60 but not too low for now.

Biggest advantage is foreign companies running away from china. Japan southkorea are already making moves. USA is already approving Indian pharma plants at record speed some 10 plants have been licensed within a month or so .

We need to provide tax incentive as well as infra package to them . We can't miss this chance.

 

[ezsasa]

SWF is essentially an investment fund by the govt. If a nation has excess wealth ( from oil or mineral exports ) or high per capita income so people invest in govt fund for future pension ( Sovereign pension funds) .

They use this money collectively to generate long term returns . Since it's govt controlled focus is on security of investment rather then profit. So the investment is usually in very secure areas with long term planning .

India doesn't have excess money from experts yet. But we do have EPF and PPF which are sovereign funds. But they mostly invest in India itself as growth is highest in India.

Even Canadian pension fund invests in Indian infrastructure to secure long term return to be able to pay pension to Canadian pensioners.

In future we will have multiple such funds which the govt could use strategically.

There is already psu disinvestment fund. Telecom surcharge based fund and govt pension funds like NPS .

We do have multiple funds which have been collected by governments over past 2 decades, but unspent.

These are valued atleast 4 lakh crore cash, but they have to be spent for a specific purposes and not for general usage.

Let me see if I can find the exact value on RBI website.

 

[Aaj ka hero]

USA is already approving Indian pharma plants at record speed some 10 plants have been licensed within a month or so .

Sir, why I don't feel happy about this though?
According to me this is "just one day dream job", you know these AMERICANS can do reverse too very fast.
Just to point out unlike any nation, yes unlike any nation USA works on it's goal.
Whether in eighties during jihadi uprising or after 9/11 really these guys are dangerous.
I must say that INDIA government must strong arm these Americans so that in future India pharma interests are taken account for.

 

[Aaj ka hero]

There are no permanent friends in diplomacy. Only permanent interest .

We should judge USA by what we are gaining through it. So far so good. Let me list some benefits

1. USA got us nsg waiver which legitimised our nuclear weapons. Now we are a defacto nuclear weapons state despite not signing npt or ctbt.

2. USA got us into mtcr , wessenar , Australia group which allow us to access sensitive dual use technology important for both military and economy (space application).

3. USA didn't oppose our asat test and 370 removal. Their media cried but govt stand was pro India.
4.usa weaponry such as m777 , p8i ,Chinook , Apache , c17 ,c130 ,mh60 giving us tremendous edge over china . These are fast transparent deals where we had no Desi alternative. Delivery were fast too.

5. USA excercises a lot with us and we learn a lot from them especially in naval domains , carrier operations.

6. Quad is getting serious slowly.

7. USA is ready to sell is emals and catobar tech if we go for it.

8. USA is ready to sell us armed drones even if we are not in nato.

9 . USA engine reliability saved Tejas. Imagine with single Russian engine lca would have crashed and critics would have closed the program.

Mwf and amca and tedbf program look secure because a solid reliable engine is already available for them. Thanks to USA.
On top of that economically USA is vital for us. We enjoy huge surplus with USA in trade. And USA has been welcoming Indian immigrants uptill now.

China grew by access to US market. South Korea became richer than France thanks to USA alliance.
Japanese per capita income is very high by being major trade partner with USA.

Now we are already strategically independent we have nukes , nuclear triad , icbm ,slbm, nuke submarine ssbn and ssn in works . We have own bmd and asat systems . So we will never depend on USA for survival like Japan or Korea. That means our alliance will be of very different kind.

Now judge it on based upon these facts.

Sirji, this is from what I consider an anti-us though he looks like China lover but anyway worth to read.

Conspiracy against Narendra Modi’s Government? | IndiaFacts

If the US triggers warlike actions in the ocean and on land against China, India will be required to offer itself as an uncomplaining accessory.

indiafacts.org

They want dependent India.

 

[Bhoot Pishach]

GOI BLOCKED predatory takeovers by Chinese Companies.

COVID-19: Target China? Centre moves to block opportunistic takeovers of Indian firms

NEW DELHI: The Government of India has swiftly moved to block deep-pocketed Chinese entities from mounting opportunistic takeovers of vulnerable, pandemic-hit I

www.newindianexpress.com

COVID-19: Target China? Centre moves to block opportunistic takeovers of Indian firms

The notification comes soon after several sections of the industry warned the Centre that heavily capitalised Chinese entities and funds were shopping for vulnerable Indian companies.


Published: 18th April 2020 04:17 PM | Last Updated: 18th April 2020 05:16 PM


By Jonathan Ananda
Express News Service

NEW DELHI: The Government of India has swiftly moved to block deep-pocketed Chinese entities from mounting opportunistic takeovers of vulnerable, pandemic-hit Indian firms. On Friday, the Ministry of Commerce and Industry moved a notification amending its Foreign Direct Investment (FDI) policy, making government approval mandatory for any investment from countries sharing a "land border" with India.

The notification comes soon after several sections of the industry warned the Centre that heavily capitalised Chinese entities and funds were shopping for vulnerable Indian companies laid low by the COVID-19 pandemic.

The Centre's amendment seems clearly aimed at preventing such takeovers by Chinese entities, since out of the seven countries India shares a land border with, investments from Pakistan and Bangladesh already required government approval. Excluding China, the rest -- Afghanistan, Nepal, Bhutan and Myanmar -- are insignificant sources of FDI into India and aren't generally perceived as financial national security threats.
The earlier policy had allowed FDI through the automatic route in over 1,000 categories, except for 16 sectors including defence and telecom.

The newly amended policy now says that "an entity of a country which shares a land border with India, or where the beneficial owner of an investment into India is situated in… can invest only under the government route".

This condition shall also apply to the transfer of ownership of FDI, which "directly or indirectly" results in beneficial ownership falling to entities in one of these countries, said the notification.

The move comes after a series of developments and warnings from industry bodies to the Centre. For instance, March shareholding disclosures had revealed that the Chinese central bank now held a 1.01 per cent stake in one of India's biggest blue-chip financial firms: HDFC.

Other countries like Australia and Germany have also recently tightened FDI rules to prevent Chinese companies from indulging in predatory behaviour and buying out firms left vulnerable by the Covid-19 pandemic.

 

[IndianHawk]

Are u for real??
All remittances are not only from gelf,most Indians live in West also send money/buy properties here

btw entire remittance is not even CROSS 5% what we pay for OIL,to those M-E barbarians.

Hope technology(Battery/Solar etc) will develop soon sothat we won't need purchase oil (may happen in one/two decades),entire Arab filth beg on India's streets.

Most of remmitance come from gulf and USA and low oil will hit them both.

Our remittance are almost 65-70billion usd while our oil import bill last year was 100billion+ something. So remittance is very significant.

But low oil goes beyond this . Low oil price will bring another round of global recession as gulf and Russia and slowdown in USA and uk + Norway and Canada all of which sell lots of oil.

Balance is key.